Vonage Holdings to pay AT&T as part of their legal settlement

Vonage Holdings to pay AT&T as part of their legal settlement

Vonage Holdings is one of the leading providers of VoIP services in the US. The company has now said that they would be paying up to $7.8 million a year to AT&T as part of their settlement in a patent case.

The company said that they have signed on a five-year settlement deal. This would require them to pay $1.95 million to AT&T in January 2008 in addition to more payments of $650,000 per month over the life of the multiyear contract.

In return, they would get non-exclusive rights to AT&T patents related to Voice over Internet Protocol and dual-mode wireless services.

Vonage has been struggling with these lawsuits in the recent months. Their IPO has been a major disappointment and a lot of experts believe that they would struggle to survive in the coming months.